Correlation Between Neola Medical and IZafe Group
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By analyzing existing cross correlation between Neola Medical AB and iZafe Group AB, you can compare the effects of market volatilities on Neola Medical and IZafe Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Neola Medical with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neola Medical and IZafe Group.
Diversification Opportunities for Neola Medical and IZafe Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Neola and IZafe is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Neola Medical AB and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and Neola Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Neola Medical AB are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of Neola Medical i.e., Neola Medical and IZafe Group go up and down completely randomly.
Pair Corralation between Neola Medical and IZafe Group
Assuming the 90 days trading horizon Neola Medical AB is expected to under-perform the IZafe Group. But the stock apears to be less risky and, when comparing its historical volatility, Neola Medical AB is 1.17 times less risky than IZafe Group. The stock trades about -0.08 of its potential returns per unit of risk. The iZafe Group AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21.00 in iZafe Group AB on September 5, 2024 and sell it today you would earn a total of 1.00 from holding iZafe Group AB or generate 4.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Neola Medical AB vs. iZafe Group AB
Performance |
Timeline |
Neola Medical AB |
iZafe Group AB |
Neola Medical and IZafe Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Neola Medical and IZafe Group
The main advantage of trading using opposite Neola Medical and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neola Medical position performs unexpectedly, IZafe Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IZafe Group will offset losses from the drop in IZafe Group's long position.Neola Medical vs. iZafe Group AB | Neola Medical vs. Triboron International AB | Neola Medical vs. KABE Group AB | Neola Medical vs. IAR Systems Group |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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